What is a “split roll” property tax system?

A “split roll” property tax system is a tax system where the taxing of certain types of property is treated differently than other kinds of property. In Pennsylvania, this means that residential property is taxed differently than commercial or industrial property. In a split roll tax system, residential property is typically taxed based on its assessed equity or value, and that is known as a real estate tax. This is based on the current market value of a home or other residential property. On the other hand, commercial and industrial property is typically taxed at a different rate, and is based on the assessed value of the property. This is often known as a business privilege tax. It is based on the potential income that certain kinds of businesses can make in a certain area. The result of this split roll system is that businesses can be taxed at a rate that is higher than the rate that residential properties are taxed at. This helps to make sure that businesses are paying their fair share in taxes. It can also help to encourage businesses to remain in a certain area.

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